Uncertainty clouds latest global energy forecast

The Center for Strategic and International Studies on
Thursday hosted Adam Sieminski, administrator for the US Energy
Information Agency (EIA). Sieminski shared highlights from the
agencys recent International Energy Outlook 2013 (IEO2013) report in a conference call with
reporters.

Key findings from the study are:

Globally speaking, gross domestic product (GDP) will
increase 3.6%/yr through 2040. It is a 56% increase from the
2010 levels. Much of the new economic expansion will be driven by
growing population and economies of China and India.

Renewables are the fastest growing segment of the energy
mix.

Natural gas is the fastest growing fossil fuel; much of
the new consumption is related to development of the US shale
gas resources

Coal consumption will increase faster than crude oil.
Most of the coal consumption will be by China through 2030,
at which point China will shift from a
manufacturing focus to services.

Annual carbonemissions will increase
40% by 2040 to about 45 billion metric tons, according
to Sieminski.

Strength in developing countries. China and India are responsible for the
majority of new energy consumption due to growing populations
and economic expansion. Energy efficiency is
improving in both nations but not enough to affect energy
consumption growth, the administrator explained.

China and India accounted for 25% of the
global energy consumption, but their share will increase
to 34% by 2040, with Chinas energy consumption at twice
the level of the US.

China is expected to remain as a coal-based
energy economy through 2030, with coal primarily used for
electrical power generation. However, China does have plans to
increase nuclear power plants to meet future energy need with
possible 160 gigawatts of capacity.

Crude oil. Non-OPEC nations are increasing
production at a faster rate than OPEC nations. Much
of the new production is driven by the deepwater and presalt
from Brazil, shale oil in the US, oil sands in Canada, and
conventional and unconventional resources in Russia.

Sieminski contends that Brazil needs to be better
organized in its plans for deepwater. According to the EIA
study, 115 million bpd production output by 2040 is possible.
The long-term view is that it is not a production problem to
meet 115 million bpd; rather, the problem is demand. New energy
efficiency requirements will decrease energy needs by developed
nations; thus less energy (crude oil, natural gas and coal)
will be needed

Natural gas. This hydrocarbon is the fastest growing fossil
fuel. Consumption will increase from 60Tcf ― 300 billion
cfd (Bcfd) ― in 2010 to 500 Bcfd in 2040. Much of the new
natural gas consumption will be by non-OECD nations with 300
Bcfd. From the supply side, Russia and the US will be major
suppliers.

In closing, Administrator Sieminiski listed the key
uncertainty factors that could further change the
forecast. Those include:

Unresolved long-term economic issues of the US
and Europe, as well as the impact of
China's economic expansion

The timing of Japans full recovery from the 2011
nuclear/tsunami and how it impacts the economic
conditions of Asia

Social unrest in the Middle East and North Africa and
potential unrest elsewhere, as those could create
volatility in oil pricing and potential supply
disruptions

Shale gas and shale oil production will drive supply and
demand for liquids.

I just believe that renewables will probably take an importantpart of the energy mixing, gaining in 2040 a considerablepercentage in the global energy distribution (crude oil, gas,coal, nuclear),This should be a must considering the negative effect of fossil fuels on the environment.